Post COVID-19 innovation
It’s strange to think that innovation as we know it may have changed for good. Considering the shift of balance between corporate innovation and startup innovation. It is true that innovation is still vibrant and being driven by startup technology, however, there has been a rapid rise in the mindsets of corporate culture whereby innovation is fast becoming the forefront of their industries.
Corporations are constantly on the lookout for ways in which they can innovate faster. But numerous corporations are still lost with what they truly need to succeed post-COVID 19.
Previously it was startup companies who were the leaders of innovation, in 2020, it seems to have shifted toward corporations who are leading the way in new innovative devices by aligning themselves alongside startup companies. As there is a shift in market needs and wants.
“It’s something Singh believes is catching on. He says research has shown that now 80 percent of corporates are either interested in working with or knowing more about startups – this wasn’t the case five years ago.”
“Corporate innovation does not work,” says Accenture
So, with the growing interest from corporations in startup companies, it seems we will see a vast improvement in the deployment of new innovative devices throughout the next 5 – 10 years, knowing that the flexibility of a startup’s development process is more accelerated than that of a corporation’ (see figure 1.0).
Figure 1.0
There are numerous reasons why a startup’s development cycle is shorter than a corporation. The main reason is, startup companies are not restricted by internal processes, which drastically hinder innovation.
Startup companies are free to grow and develop without the hammering pressure from a hierarchical system. Internal corporate politics are constantly at play when corporations try to innovate. Funding, quality control, priorities, vision alignment, are all issues corporations must address in order to speed up their time-to-market.
Figure 2.0
However, knowing the startup’s average time-to-market, corporations can easily take advantage of this by offering their resources and expertise to the startup teams and treating them as an external innovation department, with the added bonus of reliving them of a corporation’s internal issues. This could drastically accelerate the time-to-market (see figure 2.0) and see potentially higher success deployment of future devices.
In light of a growing model between corporations and startup companies, corporate innovation is now challenged to innovation-specific devices to fit the post-COVID 19 world.
It seems post-COVID 19 will force companies to invest their time and resources in new systems which greatly benefit their markets. According to the McKinsey report Innovation in a crisis: Why it is more critical than ever the top three industries with opportunity potential are pharma & medical, consumer packaged goods, and technology.
What this entails is a dynamic shift from their traditional markets, depending on what industry they were focused on, and implementing new processes to accommodate the new working style of their staff and customers.
Corporate innovation will need a platform to firstly, assist them in bridging the gap between startup and corporate innovation teams. Secondly, a platform designed specifically to support the product development lifecycle at an accelerated pace. Finally, a manufacturing platform that can sustain low-volume pilot production services (see figure 3.0).
Figure 3.0
Interestingly according to valuer.ai’s article How innovation helped fortune 500 companies remain relevant. Over the next 10 years, roughly 50% of fortune 500 companies will be replaced. A result, because startup companies are rapidly entering their respective industries.
With this in mind, it makes sense for corporations to focus heavily on discovering new ways to innovate faster, and/or align themselves with startup companies within the same field post-COVID 19.
By doing so, corporations have the best chances of staying competitive within their respective markets and play a large part in the assistance of new innovative devices.
Corporate innovation statistics:
Corporate 80% interested in startups:
https://www.wired.co.uk/article/narry-singh-accenture-startups
Failing Fast….
McKinsey report:
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